You are currently viewing our site as a guest which gives you limited access to view most discussions, articles and other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload your own photos and access many other special features. Registration is fast, simple and absolutely free so please:

ok.. so.. i still don't quite understand it.. does it mean that, if i'm a resident for tax purposes, it's exempt ?
or the reverse ?

Talk to your accountant !!

"Disclosure of Conduit Foreign Income components for dividend / distribution payments
On 14 December 2005 the Tax Laws Amendment (Loss Recoupment Rules and Other Measures) Act 2005 (TLA) came into effect. The TLA introduced new Conduit Foreign Income (FI) Rules that replaced the former foreign dividend account rules.

Broadly, foreign income not otherwise taxable in Australia that an Australian corporate tax entity distributes to non-residents as dividend / distribution payments may be subject to the exemption. Under the new measures, an Australian corporate tax entity (ACTE) may declare a certain amount of its unfranked dividends to be CFI. That CFI is then not subject to Australian withholding tax if subsequently paid to a non-resident.

ASX has in recent months received a number of requests from investor representatives and service providers highlighting the importance of disclosing the CFI component of a dividend or distribution payment. This then allows those groups that are non-residents, or providing services to non-residents, to pass through the full dividend amount without deducting withholding tax.

This information item is intended to highlight the existence of the CFI for dividend declaration purposes - and the importance of clearly identifying any amounts that are CFI to both local and overseas shareholders and the market generally."